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Britain Scottish party leaders release their tax return documents as
Tory leaders fail to release theirs.
Meanwihile
John Key feels “comfortable” not releasing his.
Angus
Robertson, the SNP’s leader in Westminster, has written to the
Prime Minister to demand all cabinet ministers release statements on
their financial affairs. He said the Chancellor was hypocritical in
attacking tax avoidance but failing to release his own tax returns.
He
added: “David Cameron has serious questions to answer and must
provide full disclosure of his cabinet: how many government ministers
have benefited from tax havens?”
“We
have yet to hear from George Osborne, or others.”
11
April, 2016
Prime
Minister John Key said an independent review of the legislation
around foreign trusts is likely to go ahead.
Key
told Newstalk ZB's Mike Hosking Breakfast he would ask Cabinet today
for an independent expert to review New Zealand's rules around
foreign trusts.
"We
will go and get an internationally recognised expert to go away and
have a look at the disclosure rules in New Zealand and make sure
we're ticking all the boxes.
"We
have nothing to hide so at the end of the day New Zealand should have
the best international practice in this area."
Green
Party co-leader James Shaw said National were in damage limitation
mode.
"He
hasn't admitted that there is a problem, he said that they are hiring
an international expert to tell us if there is a problem. I think we
are past that stage.
"Last
week we had the unedifying spectacle of the Prime Minister denying
that New Zealand was being used as a tax haven, whereas everyone from
Inland Revenue, Transparency International and a whole group of
international experts were saying that there was [a problem]."
Shaw
said he hoped meaningful changes might come from any expert's review,
however the Green Party wanted an open inquiry into the issue.
Labour
leader Andrew Little said a full, independent inquiry was needed. New
Zealand's reputation was being "sullied around the world"
because of the revelations, Little said.
"One
tax expert isn't going to solve this, especially one appointed by a
Prime Minister who doesn't think hiding their finances behind tax
free funds is morally wrong.
"A
full inquiry must instead assure New Zealanders that everyone pays
their fair share and that we are not part of an international tax
evasion racket."
Key
told Radio New Zealand's Morning Report he doesn't believe he has
ever used an offshore account to hide money, but did have a
superannuation fund in Singapore after working and living in the
country.
Key
said he has no intention to release his tax records publicly. "I'm
quite comfortable and very confident of my tax records. I've used the
best people, I don't use tax sheltering vehicles," he told RNZ.
Little
suggested the Prime Minister might have something to hide, saying he
was "far too cagey" when asked by media if he had ever used
a tax haven for his finances.
"He
needs to clear this up and quickly. He must come clean if he has
directly or indirectly benefited from funds in a tax haven. The last
thing our international reputation needs is for rumours to swirl
around our Prime Minister's tax affairs."
His
remarks follow revelations in the Panama Papers leaks that law firm
Mossack Fonseca bragged to clients how easy New Zealand laws made it
for foreign investors to hide their tax-free profits.
The
11.5 million documents leaked from Panama-based Mossack Fonseca
showed how the world's elite hide assets in offshore accounts. New
Zealand was identified by the law firm as a good place to hide money
in trust accounts because of its relaxed laws around foreign trusts,
the documents revealed.
The Australian
Financial Review reported that in 2012 Mossack
Fonseca's New Zealand staff reported advice they received from an
executive at Nexus Trust: "NZ has very weak laws in regard to
due diligence; they only require utility bill and passport. Trust
companies are not required to hold a licence."
The sign in front of Mossack Fonseca in Panama City. Photo / Getty Images
There
was no need to register who put assets into a foreign trust,
according to documents the AFR has
seen. A Staples Rodway lawyer reportedly explained another advantage:
"The New Zealand definition of 'beneficial owner' is different
to that of many other jurisdictions, in that we do not require due
diligence on the person/s who will benefit from the funds."
Two
years later the firm's New Zealand office was asked for "combo
packs." The packs were a combination of New Zealand foreign
trusts (which pay no tax on foreign income) and what is described as
Look Through Companies (LTCs), which could be owned by the trusts,
and which also pay zero tax on offshore earnings,
the AFR reported.
Prime Minister's chief of staff, Keith Schembri, set up secret holdings in Panama and New Zealand linked to a Dubai bank account came to light.
Prime Minister's chief of staff, Keith Schembri, set up secret holdings in Panama and New Zealand linked to a Dubai bank account came to light.
The
"Panama Papers", the document trove is the largest ever of
its kind and is said to reveal how "heads of state, criminals
and celebrities"hide their assets offshore.
"The
cache of 11.5 million records shows how a global industry of law
firms and big banks sells financial secrecy to politicians,
fraudsters and drug traffickers as well as billionaires, celebrities
and sports stars," says the International Consortium of
Investigative Journalists, which spent a year analysing the leaked
papers.
About
60,000 of these documents are believed to relate to New Zealand and
more details are beginning to emerge.
Prime
Minister John Key has come under increasing pressure to act because
of New Zealand being described as a "tax haven" in some
international media. Last week he repeatedly insisted that trust laws
had been unchanged since 1988 and no tweaks were required.
- NZ
Herald
From Radio New Zealand. The PM is evasive
From Radio New Zealand. The PM is evasive
PM responds to criticism over handling of Panama papers
A
back down is looming on the Panama Papers as the Prime Minister bows
to pressure to act over the way Foreign Trusts operate in New
Zealand. Mr Key will go to Cabinet today with a plan to hold a review
into the New Zealand foreign trust regime. All last week Mr Key
defended New Zealand's current laws and he still maintains the
country has high standards in this area.
The Panama Papers: Secrets
of the Super Rich - Monday 4
April 2016
of the Super Rich - Monday 4
April 2016
Laura Smith
Jon Scammell
Edward Snowden
Shehab Khan
Bogdan Maran
